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Accounting and finance acronyms

Every acronym a candidate or practitioner is likely to meet across financial reporting, management accounting, audit, tax and corporate finance.

56 terms defined

AICPAAmerican Institute of Certified Public Accountants
The US professional body that develops and scores the Uniform CPA Examination.
AGIAdjusted Gross Income
Total gross income less specified above-the-line deductions, used as the basis for many US tax limitations.
APRAnnual Percentage Rate
The yearly cost of borrowing expressed as a percentage, including certain fees as well as interest.
ABCActivity-Based Costing
Allocating overhead according to the activities that consume resources rather than by a single volume measure.
ACCAAssociation of Chartered Certified Accountants
A global professional accountancy body headquartered in the UK, offering an internationally recognised qualification.
ARAccounts Receivable
Amounts owed to a business by its customers for goods or services already delivered.
APAccounts Payable
Amounts a business owes its suppliers for goods or services already received.
AUDAuditing and Attestation
The CPA exam core section covering audit engagements, ethics, internal control and reporting.
BARBusiness Analysis and Reporting
A CPA exam discipline section covering financial analysis, technical accounting and government accounting.
CAPMCapital Asset Pricing Model
A model estimating an asset's expected return from the risk-free rate, its beta and the market risk premium.
CFAChartered Financial Analyst
An investment-management credential awarded by the CFA Institute.
CFOChief Financial Officer
The executive responsible for an organisation's financial planning, reporting and risk management.
CIACertified Internal Auditor
The internal audit credential awarded by the Institute of Internal Auditors.
CMACertified Management Accountant
The IMA credential focused on management accounting and financial management.
COGSCost of Goods Sold
The direct costs of producing the goods sold during a period.
COSOCommittee of Sponsoring Organizations of the Treadway Commission
The body whose framework is the standard reference for internal control and enterprise risk management.
CPACertified Public Accountant
The US accounting licence granted by a state board of accountancy.
CPEContinuing Professional Education
Ongoing training required to maintain a professional accounting licence.
CVPCost-Volume-Profit
Analysis of how volume, price and cost structure interact to determine operating profit.
DCFDiscounted Cash Flow
A valuation method computing present value by discounting projected future cash flows.
EAEnrolled Agent
A tax practitioner licensed by the US Treasury with unlimited IRS representation rights.
EBITEarnings Before Interest and Taxes
Operating profit before financing costs and income tax.
EBITDAEarnings Before Interest, Taxes, Depreciation and Amortisation
A measure of operating performance excluding financing, tax and non-cash charges.
EPSEarnings Per Share
Net income attributable to ordinary shareholders divided by the weighted average shares outstanding.
ERPEnterprise Resource Planning
Integrated software managing an organisation's core processes, including finance and accounting.
EVAEconomic Value Added
Net operating profit after tax less a charge for capital employed.
FARFinancial Accounting and Reporting
The CPA exam core section covering the financial reporting framework and financial statement accounts.
FASBFinancial Accounting Standards Board
The body that sets US Generally Accepted Accounting Principles.
FIFOFirst-In, First-Out
An inventory costing method assuming the earliest units acquired are sold first.
GAAPGenerally Accepted Accounting Principles
The financial reporting framework applicable in a jurisdiction; in the US, set by the FASB.
IASBInternational Accounting Standards Board
The body that issues International Financial Reporting Standards.
IFRSInternational Financial Reporting Standards
The accounting standards issued by the IASB and used in much of the world outside the United States.
IIAInstitute of Internal Auditors
The global professional body for internal auditors and awarding body of the CIA.
IMAInstitute of Management Accountants
The professional body that awards the CMA certification.
IPOInitial Public Offering
The first sale of a company's shares to the public on a stock exchange.
IRRInternal Rate of Return
The discount rate at which an investment's net present value is zero.
IRSInternal Revenue Service
The US federal agency responsible for tax collection and enforcement.
ISCInformation Systems and Controls
A CPA exam discipline section covering IT audit, data management and system controls.
KPIKey Performance Indicator
A quantified measure used to track progress against an objective.
LIFOLast-In, First-Out
An inventory costing method assuming the most recently acquired units are sold first. Permitted under US GAAP but not IFRS.
NASBANational Association of State Boards of Accountancy
The body coordinating between US state boards of accountancy on CPA examination administration.
NPVNet Present Value
The present value of an investment's cash inflows less the present value of its outflows.
NTSNotice to Schedule
The document authorising a CPA candidate to book a specific exam section.
P&LProfit and Loss
The income statement, reporting revenue, expenses and profit over a period.
PCAOBPublic Company Accounting Oversight Board
The body overseeing audits of US public companies.
PTINPreparer Tax Identification Number
The IRS identifier required of paid federal tax return preparers.
REGTaxation and Regulation
The CPA exam core section covering federal taxation, business law and professional responsibilities.
ROAReturn on Assets
Net income divided by average total assets, measuring how efficiently assets generate profit.
ROEReturn on Equity
Net income divided by average shareholders' equity, measuring return generated on owners' capital.
ROIReturn on Investment
Gain from an investment relative to its cost, expressed as a percentage.
SECSecurities and Exchange Commission
The US regulator of securities markets and public company reporting.
SOXSarbanes-Oxley Act
US legislation of 2002 imposing corporate governance, internal control and reporting requirements on public companies.
TBSTask-Based Simulation
A case-style CPA exam question requiring completion of a task rather than selection of an answer.
TCPTax Compliance and Planning
A CPA exam discipline section covering advanced individual and entity taxation.
WACCWeighted Average Cost of Capital
The average rate an entity pays to finance its assets, weighted by the proportion of debt and equity.
YTDYear to Date
The period from the start of the current financial or calendar year to the present date.

More reference guides

  • Accounting Terms — Plain-English definitions of the core accounting terms used across financial reporting, bookkeeping and the CPA, CMA, ACCA and EA exams.
  • CPA Glossary — Definitions of the bodies, documents and processes involved in the US CPA exam and licensure, from NASBA and the NTS to the 150-hour rule and reciprocity.
  • CMA Glossary — Definitions of the terms behind the CMA USA certification and the management accounting concepts its two parts examine, from the IMA to variance analysis and transfer pricing.
  • US Tax Dictionary — Definitions of US federal tax terms relevant to the IRS Enrolled Agent exam and the CPA REG and TCP sections, covering filing, deductions, entities and IRS representation.
  • Accounting Formulas — The accounting, ratio and finance formulas tested across the CPA, CMA, ACCA and EA exams, each with its calculation and what the result actually tells you.
  • Accounting Dictionary — every term across all guides, indexed A–Z.